A representative of one or more insurance companies who is able to sell many types of insurance policies on a commission basis is known as an insurance agent. The person is usually licensed by the State Insurance Department and appointed by the insurance company to sell insurance to a new or current policyholder. By contract and by law, every insurance agent is endowed with selected powers and responsibilities. It is their job to explain you new policy to you, so don’t be afraid to ask questions if you don’t have a full understanding of all your insurance policies.